Insurance agents make mistakes just like everyone else does. When they do, customers can find themselves without coverage, and the agent might be held responsible. For this reason, it is important to have insurance e&o for insurance agents. Here are three things this type of insurance covers.
Transcription Errors
Mistakes happen sometimes when transcribing information. This is especially true if the transcriber is interrupted or distracted while working. For example, an agent might accidentally type numbers onto a form from the wrong column of data, resulting in an incorrectly-written policy.
Misunderstandings
An insurance agent and his or her client might have a miscommunication that leads to a misunderstanding. Just one incident can have serious consequences. For example, a client might incorrectly understand that his or her policy covers a house in case of flood, but it actually does not. If a flood should occur, the house would not be covered.
Omissions
An insurance agent might forget to disclose information to a client, which can have expensive consequences – without insurance, that is. For example, an agent might neglect to inform a client that his or her auto policy does not sufficiently cover an expensive classic car. When he or she gets into an accident, he or she might find out that no money is coming to make the repairs.
Without the proper insurance, an insurance agent is liable for damages. It is important to have the right coverage.